EUR - BEARISH 1️⃣ Investors expect the Fed to shift to targeting average inflation, which would provide it with more flexibility to let inflation run above target as the central bank retains an ultra-easy monetary policy stance to support the US economy. 2️⃣ Investors remained cautious ahead of a key speech by Federal Reserve Chairman Jerome Powell at the annual...
CAD - BULLISH 1️⃣ CAD trade in positive territory due to US dollar weakness. 2️⃣ Rise in oil prices after tropical storms Marco and Laura hit the Gulf of Mexico and amid optimism about coronavirus treatments. JPY - BEARISH 1️⃣ Upbeat market mood keeps safe-haven JPY's gains limited. US President Donald Trump provided emergency authorization for the use of...
NZD - BEARISH 1️⃣ New Zealand extended its level three lockdown restrictions in Auckland until at least midnight on Sunday, reporting 7 fresh cases of the coronavirus as community transmission persists. 2️⃣ The volume of total retail sales in New Zealand declined a seasonally adjusted 14.6% in the second quarter of 2020, posting the largest drop in total volume...
The dollar has entered into corrective phase after the July FOMC minutes failed to feed the rally in risk assets. The two-day Jackson Hole symposium starts Thursday and the theme is ‘Navigating the Decade Ahead: Implications for Monetary Policy’. Once again, the market will be on the look-out for any indications that the Fed is close to adopting Average...
GBP - BEARISH 1️⃣ The latest disagreements over the UK truckers’ access to Europe risk breakdown of the seventh round of Brexit negotiations. 2️⃣ A turnaround in the global risk sentiment extended some support to the USD's relative safe-haven status. 3️⃣ Tomorrow retail sales expect to print negative due to weaker BRC retail sales and average hourly earnings. ...
CAD - BEARISH 1️⃣ WTI oil prices extended the decline in the morning trade in the US, falling more than 2% to below $42 per barrel amid increasing doubts over a recovery in fuel demand after the Fed painted a gloomy outlook for the US due to the coronavirus crisis. 2️⃣ OPEC said that a second prolonged wave of the coronavirus is a major risk for the recovery in...
Why we look to long AUDJPY? ===== MARKET OUTLOOK ===== AUD - BULLISH 1️⃣ Investors pushed the US Dollar to fresh 2-year lows in early Asian trade amid delayed fiscal stimulus for the American economy. 2️⃣ Australian Government signed an agreement with UK-based drug company AstraZeneca to secure the potential COVID-19 vaccine developed by Oxford University, if...
EUR - BULLISH 1️⃣ The euro held steady at $1.195 on Wednesday, its strongest level since May 2018, as investors monitor a new round of Brexit talks and as the greenback remained around two-year lows amid a lack of progress in US relief package negotiations. 2️⃣ European Union has approved a landmark 750-billion-euro package in July and ECB has extended a...
CAD - BULLISH 1️⃣ Higher oil prices on the back of a bigger-than-expected drop in US crude oil inventories last week according to both the EIA and API. 2️⃣ All major economic data in Canada printed well. 3️⃣ CAD also supported by a weaker dollar amid a lack of progress in negotiations on a new US coronavirus relief package. CHF - BEARISH 1️⃣ The SNB President...
AUD - BULLISH 1️⃣ Fulltime Employment in Australia rose more than expected in July. 2️⃣ Greenback remained under pressure amid a lack of progress in US relief package negotiations. USD - BEARISH 1️⃣ Lack of progress in negotiations on a new coronavirus relief package worried investors. 2️⃣ President Donald Trump accused congressional Democrats of not wanting...
EUR - BULLISH 1️⃣ European Union has approved a landmark 750-billion-euro package in July and ECB has extended a quantitative easing program while US lawmakers are still battling over a new coronavirus aid. 2️⃣ Eurozone's industrial output jumped again in June, although at a softer rate than markets had predicted, as activity recovers from sharp declines in March...
AUD - BEARISH 1️⃣ Australia’s central bank chief Phillip Lowe also noted that economic growth is unlikely to lift until the final three months of this year, with Victoria’s renewed lockdown to contain its Covid-19 outbreak “broadly offsetting” the recovery that’s been unfolding elsewhere. 2️⃣ The market mood remains cautious amid coronavirus concerns, US fiscal...
AUD - BEARISH 1️⃣ Westpac's August consumer sentiment showing a downturn in morale and Q2 wages sub-consensus for the weakest y/y rate of growth in 27 years. 2️⃣ Victoria added 410 fresh cases and a further 21 deaths on Wednesday, while neighboring New Zealand was plunged back into lockdown as four people from a household in Auckland, the country’s largest city,...
CAD - BULLISH 1️⃣ Oil prices rose on the back of Saudi Aramco’s upbeat view on Asian demand and as Iraq pledge to deepen production cuts. 2️⃣ All major economic data in Canada printed well. CHF - BEARISH 1️⃣ The SNB President Thomas Jordan has been reiterating the CB will continue to intervene strongly in the foreign exchange market to stop the rise of the...
GBP - BULLISH 1️⃣ GBP trading well ahead of UK second-quarter GDP data to be released on Wednesday and helped by a weaker dollar. 2️⃣ GDP data expect to print positive tomorrow. Numbers show that spending improved towards the end of the quarter. Trade balance was better. 3️⃣ Jobless rate beat with 3.9% in June. CHF - BEARISH 1️⃣ The SNB President Thomas Jordan...
AUD - BULLISH 1️⃣ Global risk appetite was boosted after governor of the People's Bank of China Yi Gang noted that China will continue implementing the phase-one economic and trade agreement with the US while measures aimed at opening up China's financial sector will continue. 2️⃣ Goldman Sachs raised its 2021 US GDP forecast to 6.2% from 5.6%, driven by...
USD - BULLISH 1️⃣ President Trump signed four executive actions to extend stimulus to workers, after Democrats and the White House failed to reach an agreement on a coronavirus stimulus relief bill last week. 2️⃣ Investors turned to safety on escalating tensions between the US and China after Beijing said it would impose sanctions on 11 US politicians in...
GBP - BEARISH 1️⃣ Investors turned to safety amid concerns about US-China relations, while a stronger-than-expected US jobs report released on Friday supported the greenback. 2️⃣ Bank of England left monetary policy unchanged as widely expected and struck a less pessimistic tone about the economy, while noting that would take more time to recover from the...